CONTRACT DISPUTE RESOLUTION MECHANISM AT PERTAMINA EP ZONE 7

Abstrak

Background. Pertamina EP Zona 7, as a Cooperation Contract Contractor (KKKS) under the Upstream Subholding, relies heavily on procurement contracts with external partners to carry out oil and gas exploration and production activities in the Jatibarang, Subang, and Tambun Fields. The complexity and high risk inherent in these contracts create considerable potential for disputes, whether arising from work delays, cost overruns, or differing technical interpretations.

Aims. This study aims to analyze the dispute resolution mechanism applied at PT Pertamina EP Zona 7 and to compare the effectiveness of resolution through the District Court and Arbitration.

Methods. The method employed is normative juridical research using a literature-based approach to statutory regulations, internal company guidelines, and relevant legal literature.

Result. The findings show that dispute resolution at Zona 7 follows a tiered approach, beginning with internal deliberation and escalating to a formal forum only as a last resort (ultimum remedium), in accordance with SKK Migas Work Guideline PTK-007/SKKMA0000/2023/S9 (Revision 05). The comparison between the District Court and Arbitration indicates that arbitration is superior in terms of time efficiency, confidentiality, and the technical competence of arbitrators, despite requiring higher upfront costs.

Conclusion. Consequently, the arbitration clause has become the dominant and most suitable forum choice in procurement contracts at PT Pertamina EP Zona 7 to safeguard operational continuity and achieve national oil and gas lifting targets.